2. AS/AD in numbers Price level (GDP deflator, 2000 = 100) Quantity of real GDP demanded Quantity of real GDP supplied (trillions of 2000 dollars) (trillions of 2000 dollars) 115 8.8 12.0 110 9.4 11.0 105 10.0 10.0 100 10.6 9.0 95 11.2 8.0 90 11.8 7.0 Based on the table above, a) What is the equilibrium price level and real GDP? (1 point) b) If potential GDP is $11.0 trillion, what does that imply about the economy's level of employment? (2 points) c) If potential GDP is $9.0 trillion, what does that imply about the economy's level of employment? (2 points)3. The One-Third Rule Use the one-third rule to fill in the blanks in the table below Year Labor productivity growth Capital per hour of labor Technology growth (percent per year growth (percent per year) (percent per year) 2004 4 6 2005 2 2006 6 ONN 2007 4 4. From CPI to inflation Item Quantity Price Price (2007) (2007) (2008) Oranges 50 $0.90 $0.75 Bananas 100 $0.50 $0.95 Chicken 200 $2.00 $2.50 Beef 100 $5.00 $4.80 Bread 300 $1.75 $2.00 The table above gives the CPI basket for 2007 and 2008. Suppose that 2007 is the reference base period. a) What is the cost of the CPI basket in 2007? b) What is the cost of the CPI basket in 2008? What is the CPI for 2007?d) What is the CPI for 2008? e) Calculate the inflation rate between 2007 and 2008